McLaren Group, owners of the McLaren Formula 1 team, has had a loan request of £150million rejected by the UK government.
As first reported by Sky News, McLaren Group had turned to the UK government for financial support to help protect the company through these turbulent times during the global health crisis.
McLaren were the first Formula 1 team to use the government’s furlough scheme, while both Carlos Sainz and Lando Norris, plus senior management, have taken pay cuts as a protective measure.
With no Formula 1 racing since December 2019 and none on the horizon until potentially the start of July, all teams are feeling the pinch. The estimated lost revenue with each postponed race is believed to be in the region of $1.5m to $2m.
McLaren Group had stated its intention of asking the government for financial aid in an investor call last week.
Paul Buddin, McLaren’s finance chief, said: “We are looking at a number of very credible sources, and that includes all [those we] might be expected to ask, including government, including third parties.”
Upon confirmation of loan rejection from the UK government, a McLaren Group statement read: “Like many other British businesses we have been severely affected by the current pandemic.
“We are, therefore, in continued dialogue with our banks, investors and government to help navigate short-term business interruptions.”
A spokesperson for the UK government added: “We continue to regularly engage with businesses across all sectors, including those in the automotive industry.
“Firms can draw upon the government’s comprehensive package of financial support, including loans and guarantees, tax deferrals and the job retention scheme.”